Dear Stakeholders and Partners
I sincerely believe it is time to reflect and look back at the year gone by endingMarch 2018 certain developments like macro environment global concerns on variouseconomies and events affecting our patent licensees etc. have greatly influenced almostevery corporate entities. These are not in everyone's control. Your company did see someslowdown in the second half onwards and I take this as a signal for us to tighten ourbelts start looking more seriously into our entire patent portfolio work even harderinto initiating Make in India projects taking benefit of our Honorable PrimeMinister's initiatives of focusing in Swachh Bharat (Clean India) Secure India and GreenIndia.
Our clients in Europe have gone under pressure from slowing down of the Europeaneconomy due to the US
President's Make in USA and America First policy pronouncements resultantly we decidedto de-risk our business model and focus on Make in India projects and getting ready toenter with proper strategies into the US markets. As we all know that this shiftnecessitates fresh thinking and innovation. We now have new team members who are alignedto this new thought process and are now getting active in identifying varied technologypartners in Europe and UK.
Brexit will be beneficial to your company as Arrow's UK subsidiary companies will gainimportance while opening the Indian and European markets. We have been focusing on newerand greener technology like using Graphene to replace carbon black and this vision willfructify in the coming years. Arrow UK has been working with some leading technologypartners in UK for this project.
We continued to do what we do best: deliver innovative and environmental-friendlysolutions to our customers and to drive the performance of your Company while ensuring afocus on sustainability. We demonstrated resilience and strength to withstand a difficulteconomic environment.
This innovation-driven-approach and an eye for newer technology partners and goingforward our focus will be on operational efficiency in production processes andtechnology absorption in India which will certainly add to the bottomline in comingyears. The company has taken many strategic initiatives in the last year to achieve itsvision of being a leader in innovative green technologies. This aspiration continues toignite our creativity energize us enables us to deliver what we commit whichultimately generates value for our shareholders.
Your company continues to tread on the path of transformational journey of sustainedgrowth. To achieve strong growth consistently development of organizational capabilitiesis very much essential. The Company has continued to make meaningful investments inpeople processes Research & Development Intellectual Property and Technology. Thesecost outlays are long term investments for the future. We will keep on looking out forpotential profitable avenues which will continue to create long term value for theshareholders.
The Patent business I assure you continues to be the central focus point of theCompany. We have presently 38 patents granted in India and across various geographicalregions in the field of health& hygiene high strength paper security packaging etc.Our product development team is continuously working on the development of new productsand filing new patents to secure the Company's IP portfolio. Also on tangible assets sidewe undertook an expansion in our Ankleshwar factory. The new plant with bettertechnology commissioned in previous year has now stabilized its production processesand have developed high value water soluble films (WSF) for packaging liquids and othercleaning agents. We are confident of delivering world class WSF and taking forward ourpartnership with Proquimia a Spanish company having world leadership in their businesssegment with this expansion we expect increased revenue and profitability for our WaterSoluble Film and Klenz division.
While on this let me assure you once again that your company shall continue toinitiate investment in varied business opportunities in general and GOI's Make inIndia projects in particular to derive greater augmentation of overall business.
I express my sincere gratitude to our shareholders long term investors and ourdedicated team members who have kept faith in your company. I feel proud in acknowledgingthe contribution of every single member of team for having faith in the Company anddelivering the best. Lastly let me re-assure you that the Company shall strivecontinuously to enhance shareholders and other stakeholder's values in every possible way.Again I would like to acknowledge the continued support and co-operation from all of you.
Chairman& Managing Director